Business, 29.08.2020 21:01 carcon2019

How is the contribution margin per unit of limited resources computed?a. When a company has limited resources (i. e., machine hours), it is necessary to find thecontribution margin per unit of limited resource. b. Contribution margin per unit of limited resource is computed by dividing the contributionmargin/unit of each product by the number of units of limited resource required for each product. c. The contribution margin per unit of limited resource is then multiplied by the units of limitedresource to determine total contribution margin and which product maximizes net income. d. As the theory of constraints notes. Companies must continually identify their constraints andfind ways to reduce or eliminate them.

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How is the contribution margin per unit of limited resources computed?a. When a company has limited...

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